To connect with the cloud Stephan Engelen Managing Partner C3Wave Stephan@c3wave.com

Cloud environment

What the analysts say….

  Gartner   25% of new business software will be delivered as Software as a Service by

2011   20 % of the enterprise applications will be in the cloud by 2012   Cloud computing will hit mainstream by 2014

  Forrester Research   has unearthed more evidence that cloud computing, also known as

software as a service, is rapidly gaining traction in new vertical business sectors

  CIO   58% says cloud computing will cause a radical shift in IT and 47% say

they are already using it or actively researching it

  IDC   The current US economic woes will only drive more enterprises to

consider and adopt cloud offerings. Spending on IT cloud services will hit $42 billion by 2012

Technology Trigger Peak of Inflated Expectations

Trough of Disillusionment Slope of Enlightenment Plateau of Productivity

time

expectations

Where are we? Gartner: Hype Cycle for Cloud Computing

Years to mainstream adoption:

less than 2 years 2 to 5 years 5 to 10 years more than 10 years obsolete before plateau

As of July 2009

Cloud Services Governance

Cloud-Driven Professional IT Services and Solutions

Cloudbursting/Overdraft

Cloud Service Management Tools

Virtual Private Cloud Computing

Application Platform as a Service Cloud Computing for

the Enterprise

DBMS in the Cloud Private Cloud Computing

Business Process Utility Hybrid Cloud Computing

Cloud Application Development Tools

Cloud-Based E-Mail Services

Cloud Computing/ SaaS Integration

Cloud-Enabled BPM Platforms Cloud Security Concerns

Cloud Storage

Elasticity Enterprise Portals as a Service

Cloud/Web Platforms

'In the Cloud' Security Services

Cloud Computing

Public Cloud Computing/the Cloud

Real-Time Infrastructure

IT Infrastructure Utility Saas

SaaS Sales Force Automation Virtualization

Cloud Advertising

Integration as a Service

Compute Infrastructure Services

Tera-architectures Grid Computing

Crisis accelerates SaaS adoption

Today’s Perfect Storm

The Economy

Enabling Technologies

Shifting Customer attitudes

Is it about technology ?

The Cloud stack

Commitment!

Today’s Perfect Storm

The Economy

Enabling Technologies

Shifting Customer attitudes

Software as a Service “culture “

End-user buys a service

M.R.R.

Cashflow

P & L ISV =

Service Provider

Software as a Service “culture “

End – user buys

a service

M.R.R.

Cashflow

P & L ISV =

Service Provider

End- user buys a service

Expectations

Marketing, sales

& operations

Develpmt & Architect.

ISV = Service provider

A Tale of Two Business Models Running a SaaS Company requires New Business Thinking

Rev

enue

Time

Traditional Software Model

Rev

enue

Time

SaaS Model

•  Large upfront revenue

•  Volatile: Re-build every quarter

•  Rewards hunting

•  Small upfront revenue

•  Predictable: Recurring revenue

•  Rewards farming

Building a succesfull SaaS company

More then just technology; It’s the DNA of your company

  Executive Management

  Product R&D

  Marketing

  Sales

  Development

  Service

  Finance & Accounting

  Partnerships

Key challenges for established ISVs

  Everything Changes,

  Re-architecting applications

  Re-structuring revenue models

  Repositioning marketing

  Re-orienting sales/support staff

  Re-aligning channel strategies

  Reducing cost structures.

About C3Wave

C3Wave

Circle of excellence Channel /

ISV

Customer

Cloud

The Third Wave

ISV & SaaS in Belgium Preliminary results research ISV Belgium - C3Wave

ISV’s in Belgium

70%

20%

10%

“Datacenter” Usage

Internal

External

None

ISV’s in Belgium

  A lot of ISV’s get an increasing amount of questions abouth SaaS and Cloud.

  More then 50% of the ISV’s expect this year an increasing demand for SaaS and Cloud computing…….

  Less then 10% uses datacenter capacity to host applications for customers (internal or external). However 40% says they sell a SaaS product .

  75% has knowledge of the SaaS concept but only 33% knows what cloud computing is about..

  Less then 25% knows what their customers think abouth SaaS.

Conclusions

  A lot of ISV’s still need to make a step towards the services concept (support of hosting/infra)

  SaaS is known as a concept but they have little idea about the consequences of SaaS for their business.

Some key “Take away’s”

  Market in value triples in 4 years time

  Value chain will change: it’s about services !

  SaaS = biggest market and essential for cloud

  Change of DNA required for ISV’s

  ISV in Belgium: growth opportunity for SP

  ISVs in Belgium still need to make a step towards SaaS